Strategic recovery patterns for investors

Strategic recovery patterns for investors: DON'T START YOUR INVESTMENT CAREER WITH FAILURE: Don't buy stock because you hear that every body is making money in stock market as a result you want to make quick money. That is being pushed by greed and get-rich-quick mindset. FAILURE IS NOT THE END: Even when stock market is experiencing some bearish moments like some stock exchanges the world over. Convert your short term stock to long term investment, in this way, you will recover and make a lot of profit in the long run. YOU CAN BE WEALTHY WITH STOCKS: Buy stocks based on accurate information. Read about stock from conventional newspapers and financial papers. During bearish period, buy a lot of cheap stock for long term. THE ROAD TO WEALTH IN THE STOCK MARKET STARTS WITH RISK: Every investment has some elements of risk. Infact investment is a calculated risk. Study stock market very well, know the fundamentals of the companies you are buyingtheir stocks, convert to long term if bear sets in.

The lessons of the fall of WALL STREET

The lessons of the fall of WALL STREET: During the fall of Wall street of 1929, several people lost their money and properties. Many corporations were declared bankrupt. Some committed suicide because they felt that their loss was monumental and irreparable. But in all this chaos and confusion, one young man remained unperturbed. He was a young Jewish immigrant who had come to America several years before. He had worked hard for years as a labourer and had every penny saved. He was excited when he heard about the crash of Wall Street. He left Charleston to New York and headed straight for Wall street. He bought stocks like a crazy man. He bought up companies and corporations that had gone bankrupt. He saw opportunity where others saw failure. He saw GOLD in the fall of Wall Street. This visionary young man became a millionaire from these same stocks that had appreciated. He later became one of America's wealthiest men.

Stock business will never collapse

Stock business will never collapse. The reasons are most companies are standing strong with a strong capital base having $18million and above. In order to address the current global economic recession going on, world leaders have been having series of meeting. In their conclusion each government should pump money into its stock market which they did and it led to a turn-around in their stock market via a rise in their economy. Therefore don't rush sale your stocks, invest more like the richest man in the world. This is the time to invest. This time you can buy stocks at their actual value or lower than the face value. You have to know the true value of stock you are buying. True value of a stock is what the company you are buying is actually worth, which is usually discovered in the recession period. However, don't buy dead stocks. Dead stocks are stocks that don't have any basis for their price appreciation, no fundamentals, no results, noprospect or any other basic thing to make the price appreciate.

How to select stocks in the Bear market like the Richest man in the World

How to select stocks in the Bear market like the Richest man in the World: Picking stocks like Warren Buffett should be a major desire of any trading investor who wants to become a guru in trading stocks and making billions from the stock market. Trading is different from investing. Use billionaires strategies if you want to be like them. Out of 483 billionaires, 42 made their billions through stock with the current richest man Warren Buffett being one of them. He has a net worth of $62billion. Trading in stocks refers to short term investment while profitable investment is long term. Picking stock successfully like him involves being a able to value stock at their actual value.

Market correction

Market correction is a process whereby stockbrokers try to correct the value of over priced stocks. The stock market responds to both fundamental news and rumours. These two factors can drive the price of stocks to an over-priced level or an under-priced state. When market is grossly overvalued, there will be problem especially for those who borrowed money to buy shares. Overvalued stocks are stocks that have reached their peak for a period; they either enter into a resting phase or in most cases begin to decline.

Importance of Central Securities Clearing System(CSCS)

Importance of Central Securities Clearing System(CSCS). Registering with CSCS will enable you have record of your shareholding with the companies you have shares with and make such units available for trading if necessary. This record of your shareholdings can be printed out for you monthly by your stockbroker. Doing this monthly will enhance your trading proficiency. You can also access your account daily if you have internet access through the CSCS website with an annual fee. CSCS keep up to date records of transactions on the stock exchange.

Functions of CSCS

Functions of CSCS: 1. Provides depository for share holders who wish to deposit their certificates for stock market transactions. These share certificates are kept in the coffers of CSCS; such certificates are dematerialized for transaction purposes. 2. CSCS processes inter-market transfers(that is, transfers of transactions from money market to capital market etc). 3. CSCS operates as an issuer of central securities and clearing house of the exchange. 4. CSCS is in charge of securities on the stock exchange that is they guide and supervise stock transactions on the floor of the market. 5. CSCS is a safe and central depository for share certificates of companies quoted on the NSE or any other stock exchange around the world. 6. Issue of central securities identification numbers to stock brokers and investors.

Stop-loss method

Stop-loss method: This method is focused on the price movement of the stocks in a particular portfolio against the purchase prices. The current market price of stock is consistently compared to the purchase price to determine the market direction of these stocks. Stop loss method works. You can use it to forestall heavy losses. An investor who purchases a stock at $100 with a stop loss of 10-20%. It therefore means that if the stock drops below the range of 80-90 automatic sale of the stock is expected to be executed. If your stop-loss is 10% you can't lose more than 10% of your stake plus your stockbroker's charges. By using this system you may sometimes sell a good stock too soon and frustratingly watch it go on up and up. That is the price you pay for operating a safety net.

How to protect your portfolio from loses

How to protect your portfolio from loses: The method used for screening your portfolio from crashing in monetary value is called stop-loss method. The success of portfolio is embedded in the selection of stocks that comprise that portfolio. Selection of mono-sector, single-class, penny stocks can be risky because of unfavourable government policies a times. Thus a mix of various sectors and different classes of stock can serve as a shock-absorber for the portfolio.

Investment knowledge

Investment in the stock market without accurate information from the right source is like playing the market as a pool betting. Is not the best to think that the stock market is where you put in one and get ten free. Investment is a calculated application of funds into money-generating instruments or windows using information and knowledge as hub for implementation. Every investor must have an aim or purpose for investment. Dividend-paying stocks do not have any business with the bearish market. Going for companies that pay dividends in stock is the best since their fundamentals are generated right from the street while the technical outlook is always value-driven on the stock exchange.

Investing in a limited liability company

Investing in a limited liability company that has a potential of becoming a publi limited liability company in the near future can be rewarding. To be on the safe side, investment should be a long term one since limited liability company start the source of fund by inviting some trusted individuals through private placement. There is a provision for those who are capable of investing some funds of becoming directors since the capital base is small. It is easy to become a director in limited liability company than public limited liability company. Because the capital base is small the security and exchange commission does not have anything to do with it for now.

Overcoming bearish market Zigzag way

Overcoming bearish market Zigzag way: The best time to sell stock is the bullish period while the best time to buy is the bearish period. Zigzag market is when price moves at a stretch in the bullish run and moves in piece-meal in a bearish run. 1. Convert your stock to long-term investment that's a sure way out of the terrible pit between the bull and the bear. 2. Never sell in a hurry. 3. Spread your risk by diversification of investment in the capital market.4. Capital appreciation is the main key of the capital market, therefore, learn the strategy well. 5. Watch the trend of performance. 6. Try to know the time and behaviours of every stock you buy, because every stock has its own unique behaviour. Understand the different timing involved viz: Entry, Time, Resting, Exit time.

The difference between Ltd and Plc

Difference between limited liability company (ltd): shares are often restricted to the owners of the company since they are unquoted and are not open to the public. Their ownership is only limited to a few private individuals, who would have put equity contribution together, either in money or asset for the purpose of setting-up a company. In public limited liability company(plc): companies are mandated to get quoted when they have reached some level of turnover. They can come into the stock market through the new issue market-initial public offer(IPO). Companies that are listed to do business on the floor of stock exchange eg NSE, NYSE etc are called quoted companies because their shares are open to the general public for transaction.

Critical questions to ask before investing in stocks.

Critical questions to ask before investing in stocks. 1. Is the foreign exchange market the only source of your intended bank's major return on investment. If there is a major enactment of any negative government policy in this area, what will be the standing of this bank? 2. Is your bank involved in very short and high yielding but risky investments on which if such investments fail your bank can go under? 3. What kind of licence is the bank operating? Wholesale banking? Capital market operation? Insurance business? Or all of the above? 4. Is your bank ready to go international? 5. Is your bank industrial based? Some banks support industries. These are issues that determine the success of stock market.

Meaning of bearish period in stock market

Meaning of bearish period in stock market: When the price of shares of quoted companies slide down over a period, no matter the volume of transactions taking place on them, we should see it as a bearish signal. It can become a cause for concern when the value of capital withdrawal on the entire exchange is consistently higher than the value of capital input over a period of time. During this period, the bull is totally pushed to the background. No matter the capital gains on blue chip stocks, as long as capital depreciation on the entire exchange holds sway, the bears must have their grip.

Meaning of bearish period in stock market

Meaning of bearish period in stock market: When the price of shares of quoted companies slide down over a period, no matter the volume of transactions taking place on them, we should see it as a bearish signal. It can become a cause for concern when the value of capital withdrawal on the entire exchange is consistently higher than the value of capital input over a period of time. During this period, the bull is totally pushed to the background. No matter the capital gains on blue chip stocks, as long as capital depreciation on the entire exchange holds sway, the bears must have their grip.

Meaning of bearish period in stock market

Meaning of bearish period in stock market: When the price of shares of quoted companies slide down over a period, no matter the volume of transactions taking place on them, we should see it as a bearish signal. It can become a cause for concern when the value of capital withdrawal on the entire exchange is consistently higher than the value of capital input over a period of time. During this period, the bull is totally pushed to the background. No matter the capital gains on blue chip stocks, as long as capital depreciation on the entire exchange holds sway, the bears must have their grip.

Categories of stocks traded on the Global stocks

Categories of stocks traded on the Global stocks market: We have three different stocks on the global platform. 1. Small cap stock: These categories of stocks are traded for cents, because of their volatility they go with high risk. 2. Penny stocks: These are more stable and attract medium risk. They are traded between $1 and $5. 3. Blue chips: These are standard stocks that are traded above $5. These are standard companies that are traded on the major stock exchange like NYSE. They are less risky to trade because they have very sound fundamentals. They include companies like Microsoft, Google, Yahoo etc

Buying and selling of Global stock

Buying and selling of shares on global stocks is simple. There is no need to call a broker to do it for you but you simply do it yourself by clicking the buy button anytime you need to buy and the sell button anytime you need to sell. Once you have set up your account with any broker of your choice, you can buy sell at will. Basically, you need to know the fundamentals of the company you intend to invest in. Research organizations will will tell you companies with good fundamentals which in turn inform your decision to buy or sell. Some of them include cnnmoney.com, forbes.com etc.

Two types of brokers

Two types of brokers: 1. Full service stock brokers: they give you more personalized attention. The broker understands what your investment goals are and can offer recommendations on what and when to buy and sell. However, because their commissions can run as high as $100 per trade, this type of account works best for those with high net-worth and minimal activity. 2. Discount brokerage firm: Discount brokers do not offer the same level of service but they are still available to answer your questions. They execute trades for as low as 50c to $10, with commissions that are low, thereby leaving you with more money to work with.

Difference between Global stock and Forex

Difference between Global stocks and Forex: 1. Global stocks are basically driven by fundamentals; that is major news of the company makes the share prices of stocks respond to buying and selling. Though the technical aspects also play a major role, it is more fundamental than it is technical. 2. With Global stocks, you don't need to sit behind your system all day watching trends of the market as in forex which makes it less stressful. 3. To make a good buy decision in Global stocks, all you need is a good knowledge of the company you are buying into and just put your money to grow and work for you. Global stocks can be accessed by anyone around the world who has internet connection. After securing a good internet connection, you need a broker who provides online access to the market.

Global stock

Global stock is simply having access to the shares of various companies worldwide. Trading global stocks gives you access to the biggest stock exchanges that cut across the globe such as the New York Stock Exchange (NYSE), London Stock Exchange (LSE), NASDAQ and even stocks traded on the Asia Stock Exchanges. The opportunities are just limitless on the global stock platform because of your ability to buy the shares of companies operating in over 57 different countries of the world.

Benefits of penny stock club

Benefits of forming a penny stock investment club: 1. Stock market forecasts/training: someone who has no money of attending seminars can get trained through this way. 2. Opportunity to save: saving is the first step in the temple of wealth. Setting aside some money for investment club activity, an individual will be able to translate the discipline to save to profitable investment on the stock market. 3. Diversification by owing different types of assets: when one asset suffers a major decline, hopefully, other assets in your portfolio will be increasing in value helping to counter the impact of the asset that has declined. Others are Financial literacy, The power of the group, Networking etc.

Penny stock club

Penny stock investment club: Those who have small amount can still participate in stock market by forming or joining investment club. Investment club is group of people with the same mind set for the purpose of making money. Penny stock investment club refers to a group of people contributing their small amounts together to invest since a stockbroker will not collect their money individually.

Broker's account

You can buy public offer shares without broker's account; but must need a broker's account to be able to sell off. Indisputably, the public offer market is the best market for high returns on investment all over the world. This fact has practically been displayed by large volume of subscriptions witnessed in the market in recent times. Aside from being cheap, the primary market has given a lot of small money investors easy access to obtaining shares that would have been the exclusive right of the net-worth individuals.

CSCS

The most important for an investor is to get stocks at a discount. The issuance of electronic certificate will remove all the unnecessary delays in the issuance of share certificate, e-certificates will only make sense to those who have CSCS numbers. This system is e-bonus for those with CSCS statements. Their bonus issue is automatically credited to their CSCS where they can trade off immediately if they so wish.

Share certificate

Your certificate as a share holder does not guarantee you access to secondary market until the record of your holding is established on the stock exchange. So whenever there is a potential market capitalisation surge, your units holding cannot be partly to the trading activities even if you desire to.

Investor's guild

As an investor, the basic things you need, to make money in penny stock are 1. Save money for investment because what you save will keep you. 2. Time: Build your wealth with time. 3. Discipline: Set aside some little amount from all your income to buy shares. Plan: You must have a plan. This entails following a detailed plan on paper of how your portfolio of stocks is to be built. Expiry date: This is the exit period. The target date, month, year to sell your stock.

Private placement

Private placement is an opportunity given to some individuals to buy a franchise of a company. Because you have to buy a specified minimum shares. After listing the company now becomes a public liability company(PLC). Once allotment is done and private placement certificates are released, investors can register with CSCS. Hence, such shares can be available for trading on the floor of the Nigeria Stock Exchange(NSE).

Dividend Warrant

Before you can claim your dividend warrant, there are ways to go about it: you can open a stock account with your stock-broking firm. If you want it your own way, you must have a current account because dividends are cheques that can not be paid into saving account. Another way you can cash your dividend warrant is by writting an authorization letter for someone that has stock account or current account to cash your dividend warrant on your behalf.

Stock market

Stock market is buying and selling of company, organisation and government shares among owners and customers. However any organisation that wants to do the business of shares must be registered under the stock exchange of a country they are operating in. Stock business could be done both offline and online( internet ). There are many stages that are involved in stock business. These include private placement, public offer, central security clearing system( cscs ) etc.